---
kind: "section"
citation: "32 C.F.R. § 34.17"
title: "32"
number: "34.17"
heading: "Allowable costs."
url: "https://uscodex.org/cfr/32/34.17"
---

# §34.17. Allowable costs.


Allowability of costs shall be determined in accordance with the cost principles applicable to the type of entity incurring the costs, as follows:

- (a) **For-profit organizations.** Allowability of costs incurred by for-profit organizations that are recipients of prime awards from DoD Components, and those that are subrecipients under prime awards to other organizations, is to be determined in accordance with:
  - (1) The for-profit cost principles in 48 CFR parts [31](/cfr/48/part31.md) and [231](/cfr/48/part231.md) (in the Federal Acquisition Regulation, or FAR, and the Defense Federal Acquisition Regulation Supplement, or DFARS, respectively).
  - (2) The supplemental information on allowability of audit costs, in [§ 34.16(f)](/cfr/32/34.16.md?p=f).
- (b) **Other types of organizations.** Allowability of costs incurred by other types of organizations that may be subrecipients under a prime award to a for-profit organization is determined as follows:
  - (1) **Institutions of higher education, nonprofit organizations, States, local governments, and Indian tribes.** Allowability is determined in accordance with the cost principles in [subpart E](/cfr/32/subpartE.md) of OMB guidance in [2 CFR part 200](/cfr/2/part200.md). Note that [2 CFR 200.401(c)](/cfr/2/200.401.md?p=c) provides that a nonprofit organization listed in appendix VIII to [2 CFR part 200](/cfr/2/part200.md) is subject to the FAR and DFARS cost principles specified in [paragraph (a)(1)](#a-1) of this section for for-profit organizations.
  - (2) **Hospitals.** Allowability is determined in accordance with the cost principles identified in appendix IX to [2 CFR part 200](/cfr/2/part200.md) (currently [45 CFR part 75](/cfr/45/part75.md)).

## Notes

### Amendments

[63 FR 12204, Mar. 12, 1998, as amended at 85 FR 51244, Aug. 19, 2020]

### Authority

Authority: 5 U.S.C. 301 and 10 U.S.C. 113.

### Source

Source: 63 FR 12204, Mar. 12, 1998, unless otherwise noted.

### Amendments

[63 FR 12204, Mar. 12, 1998, as amended at 85 FR 51244, Aug. 19, 2020]